By Anora Mahmudova and Victor Reklaitis, MarketWatch
Analyst: Not much change in sentiment after presidential
debate
U.S. stocks edged lower Thursday as investors reacted to a raft
of weaker-than-expected economic data, earnings results and
European Central Bank President Mario Draghi's remarks.
The ECB left interest rates unchanged as was widely anticipated.
However, during the news conference Draghi indicated that there was
no discussion of tapering or extending the ECB' s bond-buying
program among European policy makers. The comments sent the euro
higher and drove equities lower, while bidding up prices of
Treasurys. The euro subsequently gave up gains, while European
equities returned to positive territory.
ECB live blog recap:Mario Draghi says no discussion of tapering
or extending QE
(http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/)
The S&P 500 inched down by 2 points, or 0.1%, to 2,142, with
seven of the 11 main sectors trading lower. Telecoms shares dropped
more than 2%, dragged down a slump in Verizon Communication Inc.
(VZ) following earnings results.
"Markets should be cheering earnings results, as we are looking
at a potential positive growth this quarter, but there is so much
uncertainty surrounding elections and Fed rate hikes, that markets
are a little unsettled," said Karyn Cavanaugh, senior market
strategist at Voya Financial.
Cavanaugh said that the Fed is not going to raise rates in
December.
"The dollar is already at the same level as it was last December
when the Fed raised rates and a stronger dollar is a problem for
many companies with overseas revenues. The Fed is unlikely to risk
a hit on earnings and potentially jobs," Cavanaugh said.
The ICE U.S. dollar index is up 0.2% at 98.13, it's highest
level since March.
The Dow Jones Industrial Average was flat at 18,204. Meanwhile,
Nasdaq Composite declined 6 points, 0.1%, to 5,240.
Investors appeared to have brushed off the third and final
presidential debate on Wednesday night.
"Last night's final debate of the U.S. presidential campaign
appears to have passed off without initiating any significant
change in sentiment for the electorate," said Tony Cross, a market
analyst for TopTradr, in a research note.
"Hillary Clinton remains in the lead, according to the polls,
and the fortunes of USD/MXN certainly play this out with the pair
briefly testing territory as low as 18.50," Cross added.
The Mexican peso was lower against the dollar, after earlier
rising to its highest against the buck in six weeks
(http://www.marketwatch.com/story/mexican-peso-rises-to-6-week-high-against-dollar-after-debate-then-gives-up-gain-2016-10-20).
The currency is seen as a good way to gauge
(http://www.marketwatch.com/story/show-what-you-know-about-tech-stocks-ailing-banks-and-a-key-trump-barometer-2016-10-10)
Donald Trump's chances in the race for the White House, and some
analysts had argued its brief rally was a sign the Republican
nominee hadn't fared as well as his Democratic opponent.
Read:After a quiet start, Donald Trump takes the bait
(http://www.marketwatch.com/story/after-a-quiet-start-donald-trump-takes-the-bait-2016-10-19)
And see:Blow by blow of the final Trump-Clinton debate
(http://blogs.marketwatch.com/capitolreport/2016/10/19/presidential-debate-live-blog-and-video-trumps-final-chance-to-knock-clinton-off-track/)
On Wednesday, the S&P 500 and Dow both closed 0.2% higher
(http://www.marketwatch.com/story/morgan-stanley-housing-starts-could-help-decide-direction-for-wall-street-2016-10-19),
boosted by a rally in oil prices.
Other markets: Oil futures were down, retreating after rising to a 15-month high on Wednesday.
Asian markets
(http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/?mod=MW_story_latest_news)
(http://blogs.marketwatch.com/thetell/2016/10/20/ecb-live-blog-mario-draghi-expected-to-keep-cards-close-to-vest/?mod=MW_story_latest_news)closed
broadly higher
(http://www.marketwatch.com/story/nikkei-zips-ahead-leading-asian-market-gains-2016-10-19).
Gold futures advanced modestly, and the ICE U.S. Dollar Index was
little changed.
Economic news: The number of people who applied for first-time
unemployment benefits last week climbed 13,000 to 260,000 to match
a six-week high, though the pace of layoffs in the U.S. remains
exceedingly low.
The Philadelphia Federal Reserve Bank's monthly index on
regional manufacturing fell to 9.7 in October from 12.8 in
September, which was the highest reading in 19 months, according to
data released Thursday.
A release on existing-home sales is expect to arrive at 10 a.m.,
with forecasts calling for a reading of 5.31 million.
In other economic news, New York Fed President William Dudley
said late Wednesday
(http://www.marketwatch.com/story/feds-dudley-expects-rate-hike-says-it-should-be-no-big-deal-2016-10-19)
that he expects the central bank will be able to raise interest
rates before year-end.
Individual movers: Shares in Tesla Motors Inc.(TSLA) traded
lower after the electric car maker's product announcement late
Wednesday, in which Tesla talked up new self-driving hardware
(http://www.marketwatch.com/story/teslas-new-product-self-driving-hardware-that-wont-work-2016-10-19)
that won't work right away.
Online auctioneer eBay Inc. (EBAY) lost ground after the company
gave a weak holiday forecast
(http://www.marketwatch.com/story/ebay-revenue-grows-though-profit-declines-2016-10-19-17485141)
with its results late Wednesday, but American Express Co.(AXP)
gained after an earnings and revenue beat
(http://www.marketwatch.com/story/american-express-shares-rise-4-on-earnings-revenue-beat-2016-10-19).
See: Dow futures' early gain is all because of American Express
(http://www.marketwatch.com/story/dow-futures-early-gain-is-all-because-of-american-express-2016-10-20)
Insurer
(http://www.marketwatch.com/story/travelers-profit-falls-but-beats-expectations-2016-10-20-74855027)Travelers
Cos. Inc.(TRV) and telecom
(http://www.marketwatch.com/story/verizon-shares-slump-despite-earnings-beat-2016-10-20)Verizon
Communications Inc.(VZ) were both lower after posting earnings
ahead of the open, while carrier
(http://www.marketwatch.com/story/american-airlines-shares-rise-after-earnings-beat-estimates-2016-10-20)American
Airlines Group Inc.(AAL), drugstore operator
(http://www.marketwatch.com/story/walgreens-stock-slips-after-revenue-miss-2016-10-20)Walgreens
Boots Alliance Inc.(WBA) and coffee and doughnuts seller
(http://www.marketwatch.com/story/dunkin-brands-beats-on-profit-and-backs-full-year-guidance-2016-10-20)Dunkin'
Brands Group Inc.(DNKN) were higher following their results.
(END) Dow Jones Newswires
October 20, 2016 10:01 ET (14:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.